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Central Coast locals scramble to find new health care providers amid failed contract negotiations

Courtesy: French Hospital Medical Center
French Hospital is one of the Dignity Health medical centers on the Central Coast.

Insurance provider Anthem Blue Cross dropped Dignity Health hospitals and medical groups after the groups failed to reach an agreement in their contract negotiations, leaving thousands of people racing to find services.

The contract between the insurance entity and medical care provider expired July 15, so members of certain Anthem health insurance plans are no longer covered at Dignity Health medical facilities.

Anthem Blue Cross did not return requests for comment by air time but the insurance provider told the San Luis Obispo Tribune that members who hold Commercial PPO, EPO, HMO and POS benefit plans as well as some Medicaid and Medicare Advantage plans are all impacted.

This contract issue is causing problems for thousands of Anthem Blue Cross members. 

Sandy Giberson is a San Luis Obispo resident and Anthem insurance member. She said she received her notice on July 23 that any Dignity Health services provided after July 15 would not be covered.

She said she had a hard time finding a doctor when she moved to the Central Coast four years ago and she doesn’t want to go through the process of finding a new one.

“It took me almost a year of searching to find someone,” Giberson said. “I was calling around and I was thinking maybe I’m not going to be able to move here because I can’t find a doctor that I feel comfortable with.”

Giberson said she is lucky to be in good health and doesn’t need to get health care immediately so she’ll likely wait to see if the contract is negotiated before trying again to find care. She said she worries for people who have more chronic conditions.

Robert Quinn is a doctor and the President and CEO of Dignity Health Medical Foundation. In a statement made on behalf of Dignity Health, he said:

“Despite our collective efforts, most of Dignity Health and California agreements with Anthem terminated as of July 16. We remain in active discussions and hope to reach a responsible new agreement soon that will protect patients’ access to the care they need. We know how important it is for patients to have access to the providers and services they trust.”

Quinn said in an effort to settle on a contract, Dignity Health has offered Anthem a proposal with rates that don’t cover hospital inflation costs and are below increases included in prior agreements.

French Hospital in San Luis Obispo, Arroyo Grande Community Hospital and Marian Regional Medical Center in Santa Maria are all Dignity Health hospitals.

Sierra Vista Regional Medical Center in San Luis Obispo, Twin Cities Community Hospital in Templeton, Santa Barbara Cottage Hospital, Goleta Valley Cottage Hospital and Lompoc Valley Medical Center are still in-network for Anthem Blue Cross members.

In a statement to the Tribune, Anthem said the company’s intent is to reach an agreement that will help protect affordability for consumers.

Rachel Showalter first joined KCBX as an intern from Cal Poly in 2017. During her time in college, she anchored and reported for Mustang News at Cal Poly's radio station, KCPR. After graduating, she took her first job as a Producer at KSBY-TV. She returned to the KCBX team in October 2020, reporting daily for KCBX News until she moved to the Pacific Northwest in July of 2022. Rachel spends her off-days climbing rocks, cooking artichokes and fighting crosswords with friends.